PROTECTING YOUR LAW FIRM AGAINST CYBER THREATS
CYBER THREATS TO LAW FIRMS ARE REAL
Law firms store highly-sensitive information that is more likely to be of interest to a hacker. As a result, more and more law firms are experiencing cyber security breaches, which are expensive and time-consuming. Since many financial losses to a law firm as a result of a security breach are not insurable other than through a cyber insurance policy, more firms are turning to Gemini Risk Partners to make sure they are properly covered.
Because of the risks and costs of a security breach, cyber liability insurance has become a critical coverage for law firms. Cyber insurance fills gaps not otherwise covered by other policies such as professional liability, crime, property and general liability. Plus, more and more of your clients will require your firm to carry cyber insurance.
CYBER THREATS ARE REAL
According to the ABA 2019 TECHREPORT, 26% of responding law firms reported having experienced a security breach; another 19% indicated they don’t know if their firm has ever experienced a breach. 36% of the respondants have had their computer system infected with a virus, spyware or malware; 26% were not aware whether any such infection has ever occurred.
CYBER SECURITY BREACHES ARE EXPENSIVE
According to the ABA 2019 TECHREPORT, consequences of security incidents include consulting fees for repair (37%), downtime/loss of billable hours (35%), expense for replacing hardware/software (20%), destruction or loss of files (15%), and many negative outcomes.
Cyber insurance policies cover:
SOCIAL ENGINEERING FRAUD
Social engineering fraud means a fraudulent act by a third party that misleads any insured and directly results in your firm’s – or your clients’ – money or securities being transferred, disbursed, paid, delivered, altered, corrupted or lost.
First-party (the law firm) cyber-related losses include breach notification, credit monitoring, fines and penalties for not complying with notification laws, forensic work, data restoration and enhancement, cyber business interruption, bricking, retention and use of a breach coach, PR costs associated with a breach, and cyber ransom payments.
Third-party (employees, clients, and vendors) cyber-related losses include employee breach of privacy, financial harm to vendors, financial loss to clients as a result of a data breach, and media liability such as libel, slander, and trademark infringement.
CYBER CRIME LOSSES
Examples of cyber crime-related losses include cyber extortion (infecting system with malware that requires payment to unlock or remove), social engineering (manipulating by clandestine means, including phishing, baiting, wires and gift card schemes), and computer fraud (loss of money/property resulting from someone gaining unauthorized access).
Make sure you select a broker that can assist with tailoring coverage to your particular firm and that can assist you with potential claims and coverage disputes.
Put your trust in Gemini Risk Partners. We’ve created our own proprietary cyber liability insurance product called CyberMate Legal, which is underwritten by Lloyds of London. We also work with several insurers who write cyber insurance for law firms such as Beazley, CNA, NAS, and Travelers.
CYBERMATE LEGAL – AN ALL-INCLUSIVE CYBER INSURANCE SOLUTION
Gemini Risk Partners created our propriety product – underwritten by Lloyds of London – to offer your firm an all-inclusive cyber insurance solution and ensure it’s properly covered in the event of a breach. This policy – and its language – is specifically tailored to the unique needs of law firms. CyberMate Legal includes coverages for social engineering, 1st and 3rd party losses, and media liability. Want to learn more? Download our PDF HERE!